Stellar (XLM) Price Prediction: XLM Continues to Outperform the Market, Will the Rally Continue?

XLM price hot streak continued on Friday, as the crypto coin rose for the fourth successive session, gaining 6% at the time of writing to trade at $0.530. That brought its gains in the last seven days to 103%.

Cryptocurrency Stellar Lumens (CRYPTO: XLM) continued its hot streak on Friday, rising 6% to trade at $0.530 at the time of writing. That brought its gains in the last seven days to 103%.

In comparison, market leader Bitcoin (CRYPTO: BTC) price dropped by 1% in the same time window.

So, what’s driving Stellar’s recent rally? Several factors could be at play.

Crypto market resumes rally

The crypto market resumed its rally three days ago following a recent downturn. Stellar’s strong fundamentals have positioned it to capitalize on this broader market upswing.

Its performance has grabbed investors’ attention, and a closer look at Open Interest data seems to affirm their bullish stance on XLM.

According to Coinglass, Stellar’s Open Interest grew by 18% in the 24 hours preceding this writing.

Moreover, XLM’s upside is supported by strong trading volume, as indicated by Net Volume on the chart below. A net positive volume during periods of price uptrends signals bullishness.

Stellar’s DeFi TVL rises

DeFiLlama data shows that Stellar’s DeFi Total Value Locked (TVL) rose by 51% in the last seven days. Also, the daily DeFi TVL was up by 7%.

This signals increased utility, which could support further gains by XLM. Stellar’s strong fundamentals and performance have made it a favorite among crypto investors, driving its recent rally.

upbeat sentimentStellar’s recent rally is also supported by a strong sentiment. Its utility and design are closely related to XRP, which has built a strong sentiment around their uptick.

This is also helped by the impending resignation of Securities and Exchange Commission Chairman, Gary Gensler, which has brought reprieve to XRP and related assets.

XLM Price prediction

Pivot: XLM price pivot mark is at $0.516. Action above this level signals bullishness. Conversely, a break below it shows bearishness.

Resistance: The first hurdle is likely to be at $0.536. Extended bullish control could break above that level and test $0.555.

Support: The first support will likely be at $0.498. A stronger downward momentum could break below that level and invalidate the upside view. Also, that could see the establishment of the second support at $0.483.